EBITDA - the Last Word?
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Certificate
0.5 Credit
Cost
1 hr.
Duration
n/a
Prep Time
1
Quiz
Overview
In this short self-study course, participants examine whether EBITDA is a cash operating statement for an income producing property as well as for a commercial business. In one instance, it appears to be an actual cash operating statement that clearly identifies cash flow available to pay debt service and income taxes. But in another instance, EBITDA appears to be only the starting point for identifying actual cash available to service debt and pay income taxes. It is indeed the first word, not the last.
Who Should Take This Course
Analysts and lenders interested in exploring the conditions under which EBITDA is a close approximation to an income producing property’s cash flow reflected in its net operating income (NOI) along with an examination of the numerous adjustments required to convert accrual EBITDA to cash EBITDA for a commercial business operation.
Prerequisites
Familiarity with a) the form and structure of the net operating income (NOI) statement for an income producing property and b) accrual financial statements for a commercial business operation along with a working knowledge of accounting.
Objectives
By the end of the course, participants will be able to:
- Explain the circumstances under which EBITDA and net operating income (NOI) are identical and the circumstances under which they diverge.
- Explain the reasons and the process for converting accrual EBITDA for a commercial business to cash EBITDA.
- Explain the role of balance sheet operating accounts in identifying cash EBITDA for both an income producing property and a commercial business operation.
Materials(access provided with registration)
- Credit Refresher on EBITDA - the Last Word?
- Quick Hit Review Quiz
- Webinar Poll Solutions
- Exercise Solutions
